Agenda - 05-22-1989 - Laserfiche WebLink

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• THE UTILITIES COMMISSION AND PUBLIC WATER SYSTEMS • by • JERRY IL TWEED DIRECTOR, WATER & SEWER DIVISION Public Staff/North Carolina Utilities Commission I. HOW IS THE UTILITIES COMMISSION SET UP? • There are seven Commissioners and a Commission Staff of approximately 50 people.The Public Staff is separate from the Commission and has an Executive Director and a staff of approximate- ly 80 people.The staffs are made up of attorneys,accountants,engineers,economists,consumer service analysts.court reporters.clerks and secretaries. The Commission Staff advises the Commission and acts as Hearing Examiners on small cases such as most water and sewer applications. The Public Staff performs some of the administrative duties for the Commission and represents the customers as an advocate before the Commission. 2. WHAT ARE THE PRIMARY FUNCTIONS OF THE UTILITIES COMMISSION IN WATER AND SEWER REGULATION? Its primary function is to set rates for utility companies where the customers have no elected officials to protect their interest.The Commission also has broad authority in dealing with customer service problems. The criterion for regulation is that the utility company provides water service to ten or more residential connections or sewer service to the public for compensation.Generally..municipalities. sanitary districts,governmental agencies,and numerous homeowners associations are exempt from regulation. The Commission is responsible for granting franchises for service areas and setting initial rates, approving transfers of franchises,deciding rate increase requests,and dealing with service related problems. 3. WHAT HAPPENS WHEN A COMPANY APPLIES FOR A NEW FRANCHISE? If the Company is not an established company holding other franchises then the application will be scheduled for public hearing.The Public Staff will investigate the requested initial rates and the proposed service and present its recommendation to the Commission Hearing axa nneer at the public hearing.Customers may also testify at the hearing as well as any company The hearing will be conducted as a court proceeding with attorneys.winnesses.and a coon • reporter.Approximately 30 days after the hearing the Examiner will issue a recommended order • in the case. The Hearing Examiner's recommended order is subject to appeal to the full Commission and all the way through the process to the Supreme Court if necessary.Appeals beyond the full Com- mission are rare in water and sewer cases. a, WHAT ARE A COMPANY'S FRANCHISE OBLIGATIONS AND RIGHTS? The franchise obligates a company to provide safe and adequate service and make improvements when required.The Company must also maintain good customer relations.Failure to perform adequately may affect the rates of the utility or it could result in fines.The Commission has the power to go to court and take control of the system away from the owner and place the entire operation into the hands of a court appointed emergency operator.The Commission cannot however take ownership of the system. • With the franchise the utility obtains the right to collect rates and discontinue service.fpr non- payment of bills.It also obtains the right of condemnation and no other privately owned utility may sell water or sewer service within the franchised area. 5. CAN A CITY OR COUNTRY WATER SYSTEM PARALLEL A SYSTEM WHICH IS FRANCHISED? • The franchise does not prohibit a city or county from selling its service in the area,in that they are not under the jurisdiction of the Commission. I know of one case where the utility company.who was being paralleled by a city,sued the City for inverse condemnation.The utility contended that even though the City was not taking its property it was taking us customers and source of income.The suit was unsuccessful but token amount. took a long time.The City eventually paid a t _